Starbucks
SBUX, -0.18%
shares fell 3.1% to $9.35. The company, which has been hit by slower store traffic and restructuring charges, said its fiscal first-quarter profit fell 69% to $64.3 million, or 9 cents a share.

Starbucks said that excluding certain items, it would have earned 15 cents a share. Sales declined 6% to $2.6 billion. The company was expected to report earnings of 17 cents a share on a 2% sales decline to $2.71 billion, according to analysts surveyed by FactSet Research.

The company said it plans to close 300 more stores and that it will lay off nearly 7,000 workers. Starbucks has been hurt by a pullback in discretionary spending by consumers who are struggling with job losses, home foreclosures and tighter credit conditions. See more about Starbucks' results.

Qualcomm
QCOM, -0.66%
said its fiscal first-quarter profit fell as it took a large investment loss. Net income was $341 million, or 20 cents a share, compared with $767 million, or 46 cents a share, in the year-ago period. Excluding stock options and other charges, the company would have earned $520 million, or 31 cents a share. Revenue rose 3% to $2.52 billion. Analysts were expecting earnings of 47 cents a share on revenue of $2.42 billion for the quarter, according to a Thomson Reuters survey of analysts.

Stock in Flextronics Inc.
FLEX, +0.11%
dropped 8.8% to $2.48 after the electronics contract manufacturer posted a fiscal third-quarter loss of $6 billion, or $7.43 a share, on net sales of $8.2 billion. The results included a non-cash charge of $5.9 billion "to write-off the entire carrying value of its goodwill," the company said.

Excluding special items, Flextronics would have earned 16 cents a share. Analysts surveyed by FactSet Research had forecast 19 cents a share in earnings on revenue of $8.05 billion.

Allstate shares
ALL, +0.55%
tumbled 11.4% to $26.26 following the company's report that it swung to a fourth-quarter net loss of $1.13 billion, or $2.11 a share. Operating income, which excludes net realized investment gains and losses, came in at $518 million, or 97 cents a share, down from $701 million, or $1.24 a share, in the year-ago period.

The property and casualty insurer was expected to report earnings of $1.35 a share, according to Thomson Reuters's survey of analysts.

Meanwhile, investors pulled shares of DryShips Inc.
DRYS, -0.96%
was down 19% at $9.90 after the Athens-based dry bulk carrier said it's been notified by two of its lenders that it's in breach of certain financial convenants. Two of its leading banks hold a total of $751.8 million of DryShip's indebtness as of Dec. 31, 2008, the company said in the filing. It also said it's been in communication with another lender that holds $650 million of its debt about the breach notification.

"Given the depressed charter market, the values of our vessels could fall even further and be below our outstanding debt," said DryShips. "If we are unable to obtain waivers or covenant amendments from our banks, our lenders could accelerate our indebtedness and foreclose on our vessels. It also said if conditions in the drybulk charter market remain depressed, it may seek to restructure its outstanding debt.

DryShips said it's is in talks with lenders about receiving loan amendments and waivers.

Among the few winners in the late session was Symantec Corp.
SYMC, -0.54%
as its shares bounced 3.6% higher to $15.15. The security and storage software maker swung to a $6.81 billion loss for the fiscal third-quarter results, but its results beat estimates. See full story on Symantec's earnings.

Ahead of the late-trading session, U.S. stocks jumped in anticipation that the government is close to launching a bank built by toxic assets now being held by financial firms. The S&P 500
SPX, +0.04%
rose 3.4%, the Dow Jones Industrial Average
DJIA, +0.08%
advanced 2.5% and the Nasdaq Composite
COMP, -0.23%
ended up 1.7%. Read Market Snapshot.

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